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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Yogesh, Naresh and Pavesh were partners in a firm sharing profits in the ratio of 2 : 2 : 1. Naresh retired on 1st October, 2024. In terms of the Partnership Deed, financial statements were prepared as on the date of retirement and profit was determined at ₹7,20,000. (i) Pass the Journal entries for distribution of profit for the period. (ii) Pass the Journal entries if a loss of ₹3,60,000 was incurred instead.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| (i) Distribution of Profit of ₹7,20,000 | ||||
| Profit & Loss Appropriation A/c Dr. | 7,20,000 | |||
| To Yogesh’s Capital A/c (7,20,000 × 2/5) | 2,88,000 | |||
| To Naresh’s Capital A/c (7,20,000 × 2/5) | 2,88,000 | |||
| To Pavesh’s Capital A/c (7,20,000 × 1/5) | 1,44,000 | |||
| (Profit for the period distributed in the ratio 2 : 2 : 1) | ||||
| (ii) Distribution of Loss of ₹3,60,000 | ||||
| Yogesh’s Capital A/c Dr. (3,60,000 × 2/5) | 1,44,000 | |||
| Naresh’s Capital A/c Dr. (3,60,000 × 2/5) | 1,44,000 | |||
| Pavesh’s Capital A/c Dr. (3,60,000 × 1/5) | 72,000 | |||
| To Profit & Loss Appropriation A/c | 3,60,000 | |||
| (Loss for the period distributed in the ratio 2 : 2 : 1) | ||||
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 5 Q.58 - Retirement of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 5 - Retirement of a Partner.
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